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Cava Group is not having a good week. On Tuesday, August 12, the fast casual restaurant chain announced its second-quarter results and a decline in net income to $18.4 million from $19.7 million year-over-year (YOY). The drop brought Cavas earnings (NYSE: CAVA) to 16 cents per share. Notably, this was above Wall Streets predicted 13 cents per share, but other figures missed the mark, according to consensus estimates cited by CNBC. Take Cavas revenue, which increased to $280.6 million from $233.5 million YOY. Despite the growth on paper, it fell short of the $285.6 million figure predicted. Then theres the companys same restaurant sales, which grew 2.1%, compared to a projected 6.1%. This low single-digit increase represented a significant decline from 2024s fourth-quarter jump of 21.2% and even quarter ones 10.8%. Protein sets a high bar Cava attributes the 2.1% to menu price and product mix, while foot traffic was stagnant. Meanwhile, in a post-earnings report call, Cava CEO Brett Schulman attributed the slow growth YOY in part to 2024s successful launch of steak, our most significant protein launch in a number of years. Investors dont seem to accept last years steak addition as a good enough excuse. But crucially, Cava also cut its sales outlook for the full year. Cavas stock plummeted over 24% after-hours and into premarket trading on Wednesday morning. Its a significant turnaround from last November, when Cava led most of its competitors with an impressive 255% stock growth year-to-date for 2024. Schulman also acknowledged an uncertain macroeconomic climate, which he described as a “fog,” noted Restaurant Business. Still, the CEO had a full-speed-ahead attitude when discussing the second-quarter results. He noted that Cava opened 16 new restaurantswith a total of 398and that long lines and warm welcomes in new markets gave him confidence that Cava will have 1,000 restaurants by 2032. He also highlighted the successful testing of chicken shawarma in Dallas and Tampa. Schulman further shared that Cavas Project Soul prototype should be done this fall. The fast casual chain announced Project Soul in 2024, an initiative focused on warmer color palettes, comfier seating, greenery, and an overall more welcoming environment in its restaurants. Its expected to launch across new restaurants starting in 2026. Cava will have to wait until then to see if the redesign parlays into another boost in same restaurant sales.
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E-Commerce
U.S. President Donald Trump will visit the John F. Kennedy Center for the Performing Arts on Wednesday to unveil its 2025 honorees for artistic excellence and tout a major renovation as lawmakers push to rename the venue for the Republican president. In a post on his Truth Social platform on Tuesday, Trump teased the announcement, saying, “GREAT Nominees for the TRUMP/KENNEDY CENTER, whoops, I mean, KENNEDY CENTER, AWARDS.” Trump also teased a physical overhaul of the center in Washington, D.C., saying he planned to restore it to the “absolutely top level of luxury, glamour, and entertainment.” No details were immediately available. Since returning to power in January, Trump has sought to put his stamp on American culture and institutions to align them closer with his political and personal preferences. His administration has ordered a review of some Smithsonian museums and exhibitions to “remove divisive or partisan narratives.” At the White House, Trump has added gold leaf to the Oval Office, paved over the Rose Garden, and embarked on plans for a $200-million ballroom. Trump did not attend events at the Kennedy Center during his first term but has taken a keen interest in it during his second, vowing to overhaul an institution he and his “Make America Great Again” supporters view as too liberal. He pushed out its chairman in February and took on the role himself, fired its longtime president, and installed his former ambassador to Germany, Richard Grenell, as interim president. In a post on X, the Kennedy Center said its building which opened in September 1971 would undergo renovations thanks to Trump’s advocacy aimed at restoring its “prestige and grandeur.” The arts facility also hinted at the 2025 winners: “A country music icon, an Englishman, a New York City Rock band, a dance Queen and a multi-billion dollar Actor walk into the Kennedy Center Opera House.” Republicans recently voted as part of a sweeping tax cut and spending bill to earmark $257 million for the building’s renovation, conditional on the opera house being named after first lady Melania Trump. Republican Representative Bob Onder in July introduced a bill that would rename the modernist building the Donald J. Trump Center for the Performing Arts. Trump last visited the Kennedy Center in June for a performance of “Les Miserables,” where he and his wife were met with a loud mix of boos and cheers. Ticket and subscription sales have fallen since Trump’s conservative takeover of the venue, and some shows, including the hit “Hamilton,” have canceled their engagements. Under his leadership, the center has sought to add conservative-leaning programming, including a show that Grenell has described as a celebration of the birth of Christ. Andrea Shalal, Reuters
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E-Commerce
The world’s biggest retailer of IKEA furniture said on Wednesday CEO Jesper Brodin was stepping down after eight years, to be succeeded by Spaniard Juvencio Maeztu, the first non-Swede to lead the group. Maeztu takes the top job at Ingka Group as the Swedish retailer grapples with U.S. tariffs, wars and geopolitical tensions that risk disrupting its operations spanning 31 countries from Europe to China, India and the United States. Brodin, CEO since 2017, said his decision to step down was not easy, but that it was the right time to do so. Maeztu is to start in the new role by November 5, with Brodin staying at the company until the end of February to ease the transition. Deputy CEO and chief financial officer since 2018, Maeztu, 57, started at IKEA in 2001 as manager of the Alcorcon store in Madrid, later managing the Wembley store in London, before a six-year stint as CEO of IKEA India. “We’ve been riding through quite some storms together pandemic, geopolitical issues, war, etcetera,” Brodin, 56, told Reuters. “So in a way I feel proud of the things we have achieved but also super confident that the IKEA house is in good order and we’ll be able to take off for the future with Juvencio.” Under Brodin, Ingka Group invested heavily to improve online shopping for IKEA, driving the retailer’s online sales up. Ingka also set new emissions reduction targets and reported in January that emissions fell by 30.1% from its 2016 baseline. Brodin said the appointment of Maeztu, who grew up in Cadiz and does not speak Swedish, shows IKEA’s global culture works. The incoming CEO is setting off on a “listening tour” of its big blue stores around the world, starting in Asia, as he builds his strategy to grow the company which last year reported weaker net profit and revenue after slashing prices. “I am fully determined to make IKEA grow and to really be relevant for many millions more consumers around the world,” Maeztu told Reuters. He has said tariffs make it harder for IKEA to keep prices low. Privately-held Ingka Group will report sales figures in mid-October for its financial year ending August 31. As the biggest franchisee, Ingka sells IKEA products manufactured by brand owner and franchiser Inter IKEA. Helen Reid, Reuters
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E-Commerce
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